SEC Proposes Crypto-Friendly Regulations Amid Congressional Delays

The U.S. Securities and Exchange Commission (SEC) has proposed tailored regulations for the cryptocurrency industry, aiming to reduce regulatory uncertainty.

The proposal, which was announced on the 18th local time, would exempt certain cryptocurrency companies from securities registration obligations if they meet specific requirements when issuing tokens to raise funds.

Under the startup exemption pathway, early-stage projects meeting certain conditions can raise up to $5 million in tokens over four years. The funding exemption allows companies to raise up to $75 million every 12 months, but they must submit financial statements and fulfill ongoing reporting obligations.

The SEC's proposal does not eliminate investor protection safeguards under securities laws, and companies must still disclose certain information to investors and comply with regulations prohibiting fraud and market manipulation.